System and method for quick quote configuration

ABSTRACT

A method and system are described for providing a trader with the ability to quickly configure the quoting side of a trading tool, without experiencing the normal delays associated with conventional methods of quoting. In spread trading, an automated spread trading tool may automatically work an order to buy or sell a tradeable object. A user may configure the trading tool to work an order in a certain tradeable object first. The system allows the user to essentially on-the-fly configure the trading tool to work a second order in another tradeable object, and in response to the change, the system can take specific actions such as deleting the order in the first tradeable object and automatically entering the second order in the other tradeable object. This allows the trader to trade quickly and efficiently.

CROSS-REFERENCE TO RELATED APPLICATIONS

The present application is a continuation of application Ser. No.12/559,502, filed on Sep. 15, 2009, and issued on Nov. 30, 2010 as U.S.Pat. No. 7,844,541; the 12/559,502 application is a continuation ofapplication Ser. No. 11/415,352, filed on May 1, 2006, and issued onOct. 6, 2009 as U.S. Pat. No. 7,599,880; the 11/415,352 application is acontinuation of application Ser. No. 11/024,149, filed on Dec. 28, 2004,and issued on Jun. 2, 2009 as U.S. Pat. No. 7,542,938. The entirecontents of the Ser. Nos. 12/559,502; 11/415,352; and 11/024,149applications are incorporated by reference herein in their entirety.

TECHNICAL FIELD

The present invention relates generally to data processing systems foruse in electronic trading and, more particularly, the present inventionis directed to tools for use in electronic trading.

BACKGROUND

An automated trading tool gives a user the ability to set up a programthat can respond automatically to patterns in market activity, and inresponse, submit orders directly to an electronic exchange. The use ofsuch trading tools is on the rise and for good reason. Sophisticatedtrading tools can intelligently sense market conditions andautomatically respond—often much faster than a human. Until recently,such sophisticated trading tools were available to a limited number ofpeople. Now, in a marketplace where automated programs commonly tradeagainst automated programs, in those circumstances, a manual-styletrader may find it difficult to survive without some kind of automatedassistance.

Automated trading tools are frequently used to hedge, which is a tradingstrategy made to reduce the risk of adverse price movements in atradeable object, by taking an offsetting position in the same or arelated tradeable object. For instance, a trader might execute a tradein one market (e.g., the “non-hedging” side), with the intention ofquickly offsetting that position in another market (e.g., the “hedging”side). An automated trading tool is what most often performs at leastthe latter function—offsetting the position by quickly firing an orderto the hedging side once the non-hedging order is matched. Hedging alsoincludes taking an offsetting position in the same tradeable object,such that the market represents both the hedging side and thenon-hedging side.

A trader might use an automated trading tool in this way to trade aspread, which generally refers to the buying and/or selling of two ormore tradeable objects, the purpose of which is to capitalize on changesor movements in the relationships between the tradeable objects. Thetradeable objects that are used to complete a spread are eachdescriptively referred to as a “leg” of the spread. A spread trade couldinvolve buying tradeable objects, buying and selling tradeable objects,selling tradeable objects or some combination thereof. A spread trademight also involve the buying and selling of the same tradeableobject—buying the tradeable object at one time and quickly offsettingthat position by selling the tradeable object, or vice-versa.

As used herein, the term “tradeable object,” refers simply to anythingthat can be traded with a quantity and/or price. It includes, but is notlimited to, all types of tradeable events, goods, and financialproducts. For instance, stocks, options, bonds, futures, currency, andwarrants, as well as funds, derivatives and collections of theforegoing, and all types of commodities, such as grains, energy, andmetals may be considered tradeable objects. A tradeable object may be“real,” such as products that are listed by an exchange for trading, or“synthetic,” such as a combination of real products that is created bythe user. A tradeable object could actually be a combination of othertradeable object, such as a class of tradeable objects.

A commercially available trading tool that facilitates the automatictrading of spreads is Autospreader™ from Trading TechnologiesInternational, Inc. of Chicago, Ill. Once the legs of the spread arechosen and the relationship between them are defined, a user can input adesired spread price and quantity, and the Autospreader™ willautomatically work orders in the legs to achieve the desired spread (orattempt to achieve the spread). The Autospreader™ is currently an add-ontool available with X_TRADER® Pro™, which is a trading application alsoavailable from Trading Technologies International, Inc.

U.S. Pat. No. 7,437,325, entitled, “System and Method for PerformingAutomatic Spread Trading,” filed on May 3, 2002 describes one suchautomated spread trading tool. An example is provided herein toillustrate how an automated spread trading tool like that described inthe above application might work. While the example illustrates hedgingin a related tradeable object, the same concepts can be similarlyapplied to hedging in the same tradeable object.

The market information given in FIG. 1 is used to illustrate thefollowing example. In particular, FIG. 1 displays example order bookinformation for two hypothetical tradeable objects, referenced in thefigure as product “1” and product “2.” Each of the tradeable objects maybe offered by one electronic exchange or separate electronic exchanges,it does not matter. The working orders column (“Wrk Ord”) is shown inthe far left columns, bid quantity is shown in the left columns (“BidQty”), the corresponding price—or some symbolic representationthereof—is shown in the center columns (“Price”), and the ask quantityis shown in the right columns for each tradeable object (“Ask Qty”).While presenting the order book information in this manner makes iteasier to illustrate the following example, the actual layout of theorder book information does not matter for this example.

The inside market for each tradeable object includes the best bid price(or sometimes referred to as the “highest bid”) and the best ask price(or sometimes referred to as the “lowest ask”). The best bid pricerepresents the highest price any buyer is willing to pay for a giventradeable object at a given time, and the best ask price represents thelowest price any seller is willing to sell a given tradeable object at agiven time. The quantity available at the inside market and at otherprice levels is referred to as market depth. Referring to FIG. 1, at acurrent moment in time, the inside market for product “1” is bid at“295” and ask at “297.” The quantity available for product “1” at theinside market is “165” at the bid and “210” at the ask. The insidemarket for product “2” is bid at “440” and ask at “442.” The quantityavailable for product “2” at the inside market is “230” at the bid and“150” at the ask. Other bid and ask quantities at various price levelsare also shown.

To begin, a trader will typically input certain parameters that thetrader wishes to achieve by the spread trading tool, such as whattradeable objects to trade, what tradeable objects to quote, and adesired spread price. As an example, let us assume that the traderwishes to quote product “1” and hedge in product “2,” and for purposesof description, the trader wishes to sell the spread, which refers toselling product “1” and buying product “2.” Using this information, theautomated spread trading tool will first automatically work a sell order(or multiple sell orders) for product “1.” The price of the sell orderis typically based on the desired spread price and the current best askprice of product “2” (the current best ask price is the lowest price forwhich product “2” can be bought). FIG. 1 shows that the spread tradingtool has automatically entered an order to sell “120” at a price of“297,” (“S 120”). When the sell order fills, then a corresponding hedgeorder is automatically sent to buy “120” (or some other designatedamount) of product “2,” at market to complete the spread. In otherwords, the spread trading tool is programmed to “fire off” a hedge orderwhen one of the non-hedging orders is filled. The spread price actuallyachieved is based on the selling price of product “1” and the buyingprice of product “2.” While the desired spread price is the price to aimfor, the spread price actually achieved by selling product “1” andbuying product “2” might be different from the desired spread price.

In some instances, however, during the time it takes to react to theorder in product “1” getting filled, the market conditions of product“2” may move in an undesirable way. For instance, according to thisexample, if the inside market for product “2” moved up in value justbefore the hedge order was added to the order book at the exchange, thenthe order would miss the market (e.g., the best ask would now be higherthan what was previously thought). Now, referring to FIG. 2 toillustrate this further, assume that the order to sell in product “1”was filled, and the automated trading tool fired off a hedge order tobuy product “2.” However, assume that the lowest ask price just moved upin price and the hedge order missed the market. Then, in an effort tocomplete the spread the trader will have to pay more (in this instance)than what he originally expected by moving his buy order to “443.”—now,he will have to pay “443,” which translates to one price higher for eachof “120.”

To avoid situations like this, a trader might notice the market movingin a direction before the above scenario actually occurs. In the instantexample, it makes more sense to buy product “2” first, then hedge inproduct “1” with a sell order. That way, the trader would buy product“2” at a lower price (before it moved) and then offset that order byselling product “1.” Assuming the trader can actively quote both legs,the trader might quickly—if not already too late, which is mostly thecase—enter an order to buy product “2” with the hopes of catching the“wave.” Then, if the order to buy product “2” is matched, the spreadtrading tool would automatically hedge in product “1.” Unfortunately,the trader, in most circumstances, is not given the opportunity todelete all of his orders to sell product “1” leaving him with an openposition. If he took the time to delete the orders and execute this newstrategy, then he may have missed out on the opportunity.

As automated trading tools become the norm in electronic trading, it isincreasingly important to develop more intelligent tools to assist thetrader in making the most desirable trades.

BRIEF DESCRIPTION OF THE DRAWINGS

Many aspects of the present embodiments may be better understood withreference to the following drawings. The components in the drawings arenot necessarily to scale, emphasis instead being placed uponillustrating example embodiments.

FIG. 1 is an illustration of example market information used todemonstrate how an automated spread trading tool might work to enter anorder in a tradeable object;

FIG. 2 is an illustration of example market information, which occurslater in time than that shown in FIG. 1, used to illustrate how theautomated spread trading tool might place an offsetting order in asecond tradeable object;

FIG. 3 is a block diagram of an example electronic trading environment,in which trading stations that utilize the example embodiments describedherein are in communication with one or more electronic exchanges over anetwork;

FIG. 4 is a block diagram of an example trading station shown in FIG. 3for carrying out the example embodiments;

FIG. 5 is a flowchart illustrating an example method that may be carriedout by the trading station of FIG. 4 in implementing the exampleembodiments; and

FIG. 6 is an illustration of a screen shot that shows an examplemechanism for switching on-the-fly the tradeable object to quote.

DETAILED DESCRIPTION

I. Introductory Overview

The example system and method are appropriate for use in an electronictrading environment, and particularly, with tools made for quotingmultiple tradeable objects. The example system allows a trader toquickly configure the quoting side of a trading tool, without the normaldelays associated with conventional methods of quoting.

According to a particular embodiment described herein, an icon is placedon or nearby a trading screen that is used to select which tradeableobject to quote. For instance, if a trader wishes to quote in onetradeable object, then the trading tool will automatically enter anorder to buy or sell the tradeable object at a particular price, theorder price of which is determined by a certain trading strategy. When atrader decides to quote in a different tradeable object than he isoriginally quoting, he can simply use the icon to select the newtradeable object to quote. In response, the example system canautomatically enter a new order to buy or sell the new tradeable objectat a price, the order price of which is also determined by a certaintrading strategy. Additionally, the example system may be programmed to,upon choosing a different tradeable object to quote, automaticallydelete any working orders in the tradeable object for which he wasoriginally quoting. As will be appreciated by one of skill in the artupon reading the description, this tool is especially important for usein any electronic trading systems, where orders can be entered at anexchange through a computer.

Other features and advantages will become apparent to one with skill inthe art upon examination of the following drawings and examples. It isintended that all such features and advantages be included within thescope of the present invention, and be protected by the accompanyingclaims. Further, it will be appreciated by those of skill in the artthat the preferred system may be provided as methods or computerreadable program means.

II. An Example System Overview

FIG. 3 is a representation of an example electronic trading environmentin which the example system and method may be employed. It is understoodthat the electronic trading environment is presented for the purposes ofillustration and description, and it is not intended to limit thepresent embodiment to the precise environment disclosed; manymodifications and variations of the environment are possible.

The electronic trading environment, as shown, generally includescomputers that operate as the trading stations 308, 310, 312, electronicexchanges 302, 304, 306 and intermediary devices such as gateways 314,316, 326 to interface with the exchanges 302, 304, 306. Networks 320,322, 324, 326 are shown to illustrate the paths of communication betweenthe various elements. It is understood that other hardware and softwarepackages can lie between the trading stations 308, 310, 312 and theelectronic exchanges 302, 304, 306. These may include third-partymachines and devices, third-party networks, hardware and/or softwareconfigurations specific to the customer site and security measures likefirewalls, hubs, security managers, and routers. It is also understoodthat fewer hardware and software packages might be utilized between thetrading stations 308, 310, 312 and the electronic exchanges 302, 304,306. For instance, a gateway may not be necessary in some circumstancesfor a trading station to communicate with an electronic exchange, oralternatively, a single gateway could communicate with multipleexchanges.

Software running on any of the trading stations 308, 310, 312 and thegateways 314, 316, 318 allow traders to log onto the electronicexchanges 302, 304, 306 to receive price and market depth information. Atrading station is a computer such as a personal computer, laptopcomputer, hand-held computer, and so forth that runs trading relatedsoftware and communicates with electronic exchanges 302, 304, 306 eitherdirectly or indirectly. The trading software may create specializedinteractive trading displays, which enable the traders to, among otherthings, obtain market quotes, monitor positions, and submit orders tothe exchange.

Any of the trading stations 308, 310, 312 may utilize the example systemand method described herein. FIG. 4 illustrates more detail of anexample trading station, referenced to by general reference character400, that is capable of carrying out the example embodiments. Thetrading station 400 includes a data interface 402 for receiving one ormore various data feeds, a processor 404 for executing the software, aninput interface 406 for communicating with input device(s) 412, a memorysection 408 for representing temporary and/or permanent storage used bythe trading station 400, an output interface 410 for controlling displayunit and/or speakers 414. The system 400 is illustrative of a computersystem that is capable of executing programmed logic to execute theexample embodiments, especially in the environment shown in FIG. 3. Asindicated before, the systems shown in FIGS. 3 and 4 are illustrativeand are not meant to be limiting.

Turning back to FIG. 3, orders are automatically sent from any of thetrading stations 308, 310, 312 to any of electronic exchanges 302, 304,306, and all matches between buyers and sellers are executed by thereceiving exchange. If an order doesn't get matched, the order is placedin the exchange's order book, which generally consists of queues ofunexecuted orders hopefully waiting for the price to move in theirdirection.

Each electronic exchange offers a real-time data feed to the tradingstations 308, 310, 312 that provides a certain level of detail on thetrading activity. From such data, it is possible to reconstruct parts,if not most or all, of the exchange's order book. Such information maybe looked upon as an expression of market sentiment and may providestrategic guidance for order placement. These data feeds may bemonitored by the example system to automate the order generationprocess.

While the level of detail in the data feed often depends on theelectronic exchange or the tradeable object being traded, most datafeeds provide the total quantity available at each of the best prices.The best bid price and the best ask price are referred to as the insidemarket. Market depth refers to the quantity at the inside market andquantity available at the next best prices. For instance, if anelectronic exchange provides five levels of market depth in its datafeed to its customers, then the aggregate quantity levels for the fivebest bids and the five best offers are offered in the data feed. Someelectronic exchanges provide limited levels of market depth while othersprovide all of the market depth.

III. An Example Method Overview

FIG. 5 is a flow chart showing an example operation of which may becarried out by the example trading system 300 shown in FIG. 4. Eachblock in FIG. 5 may represent a module, segment, or portion of code,which includes one or more executable instructions for implementingspecific logical functions or steps in the process. Alternateimplementations are included within the scope of the preferredembodiments in which functions may be executed out of order from thatshown or discussed, including substantially concurrently or in reverseorder, depending on the functionality involved, as would be understoodupon reading this description by those of skill in the art. Further, itis understood that some steps may not need to be implemented at all toachieve the desired result.

The method shown in FIG. 5 assumes that a spread trading strategy hasbeen set up (or at least partly set up) so that two or more tradeableobjects acting as legs are associated with a spread. A user might usefunctionality from any kind of automated spread trading tool, such asthe Autospreader™, that allows one to set up a spread to trade. Atrading tool that is automated refers to any computer implementedprogram or hardware device that performs a trading operation in anautomatic or semi-automatic fashion on behalf of a user or trader.

At block 500, the user can select which tradeable object to quote. Theuser may do this by through a graphical user interface (“GUI”), whichmay represent a visual environment with graphical images, such as icons,menus, and dialog boxes on a screen. The user may select and activatethese options by pointing and clicking with a mouse, selecting them witha keyboard, or by setting them with some other input device. It is alsopossible to set such parameters through something other than a graphicaluser interface, such as through command-line entry or programmed keys orhotkeys on a keyboard. To illustrate an example using a graphicalinterface, FIG. 6 shows a slider icon 600 used to dynamically switchbetween legs in a two-legged spread. The trader can simply move theslider 600 over the leg he wishes to quote. In this example, if thetrader wanted to quote “Leg A” then, he can move the slider to “Leg A;”if the trader wanted to quote “Leg B” then, he can simply leave theslider where it is currently; if the trader wanted to quote both legs,then he can move the slider to “Both.” It is understood that the labelused to specify the legs can be more or less descriptive than what isshown in the figure. It is also understood that tradeable objects may behosted at the same exchange or at different exchanges.

In addition, if more than two tradeable objects are being traded, thenthe slider 600 may also include options to choose the additionaltradeable objects. For example, the display of slider icon 600 maydynamically change on the screen to accommodate any number of legs. So,for example, if a trader sets up a trading strategy involving fourtradeable objects, then the slider will allow the trader to choose anyof the four tradeable objects or all of them.

Referring again to FIG. 5, at block 502, if the slider is in the “leg 1”position, which means that the trader wishes to quote in “leg 1,” thenthe example system preferably deletes any non-hedging orders in theother legs. If there remains a hedge order in the other legs that isneeded to offset a position, then that hedge order may still be left inthe order book and therefore not deleted. Here is an example toillustrate: if a trader was previously quoting in “leg 2” and had anon-hedging order working in “leg 2,” but then the trader switched toquote “leg 1,” the example system would preferably delete the order in“leg 2.” If the working order in “leg 2” is a hedge order, thenpreferably the example system will leave the order working in the leg.It should be understood that a trader may not want to delete any orders(regardless of the order type), in which case, the trader can set up theexample system not to delete; as such, the execution of block 502 wouldbe skipped. While it is not necessary, it is preferred that the tradercan elect whether to delete orders for each tradeable object separately.

The example given directly above illustrated an instance when the orderin “leg 2” gets deleted as a result of switching the quoting leg.However, sometimes a trader might prefer to take some other actionbesides deleting an order. Therefore, the example system may beprogrammed to perform other actions on the order, such as deleting theorder only after a predetermined timeout, moving the order to a pricethat is further off the inside market than the current order price,changing the order quantity (such as by deleting only a portion of theorder quantity), changing the order type, or take any other userdefinable action on the order.

At block 504, the slider is in “leg N” position, which means that thetrader wishes to quote in “leg N,” where “N” represents a numberrepresenting any of the legs. In this mode, the example system deletesany orders in the legs besides “leg N” that are not considered hedgeorders. Again, the trader may choose to not delete any orders, in whichcase, the example system would skip block 504.

At block 506, the slider is in a trade all legs mode. Similar to the“Both” option shown in FIG. 6, when a trader wishes to actively trade inall of the legs, he may choose to do so and the example system willpreferably enter orders automatically at prices, determined by a tradingstrategy, to buy or sell each of the legs according to the tradingstrategy. If a non-hedging order was already placed in a leg (beforeswitching to this option), then upon instruction by the user (e.g.,preferably instruction given in advance), the system may not delete theorder and will not to enter a new order. In other words, if an order isalready working in a leg before a quoting selection is made, there is noneed to delete it only to replace it again with a new order; thus, thepreviously existing order may continue to rest in the order book forthat particular leg. It is preferred that the user can determine whetherto keep previously existing orders in this manner or to simply replacethem with new orders. This user instruction may be input in advance ofsuch determination by the system.

At blocks 508 and 510, an order is automatically sent at a price,determined by a trading strategy, to buy or sell the new tradeableobject. Here is an example to illustrate. Suppose a trader sets up atrading strategy involving two tradeable objects, designated “leg 1” and“leg 2.” In this instance, the trading strategy is an instruction toachieve the trader's desired spread price. To accomplish this tradingstrategy, the example system could automatically enter an order in “leg1” at a price based on the inside market price of “leg 2” in an attemptto achieve the spread, or alternatively, the system could automaticallyenter an order in “leg 2” at a price based on the inside market price of“leg 1” in an attempt to achieve the spread. If “leg 1” is the quotingleg (based on the trader's input at block 500), then the example systemperform the former operation—automatically enter an order in “leg 1”first. If “leg 2” is the quoting leg (based on the trader's input atblock 500), then the example system would perform the latteroperation—automatically enter an order in “leg 2” first.

In another embodiment, instead of automatically entering an order onbehalf of the trader, the trader is free to send a working order to thequoting leg. For instance, according to block 508, the trader can sendworking orders to “leg 1;” according to block 510, the trader can sendworking orders to “leg N.” While trading, if the trader wishes to quoteanother leg (e.g., switch from “leg 1” to “leg 2,” or vice-versa), he orshe may do so, in which, the method would preferably start again atblock 500.

At blocks 514 and 516, the spreading tool may determine if the workingorder has filled, and if so, then the tool may offset the order with anoffsetting order per blocks 518 and 520. This automatic functionalityallows the trader to quickly (almost immediately) fire off a hedge orderper the following blocks.

At blocks 512, 518, and 520 when a working order is filled, anoffsetting order is preferably sent to the programmed destination. So,for instance, in a two-legged spread, if an order was first placed in“leg 1” and it is filled, then immediately an offsetting order will besent to “leg 2.” Or, if an order was first placed in “leg 2” and it isfilled, then immediately an offsetting order will be sent to “leg 1.”

FIG. 6 shows an example graphical interface for displaying marketinformation pertaining to a spread. Details regarding the graphicalinterface are described in U.S. Pat. No. 6,772,132, entitled “ClickBased Trading with Intuitive Grid Display of Market Depth,” the contentsof which are incorporated herein by reference. The graphical interfacemay be used to display the spread or one of the spread's legs. If thegraphical interface is used to display the spread, the user could simplytrade the spread through this one particular window. So, when the userplaces an order to buy or sell the spread in the spread window, theautomated spread trading tool will preferably automatically place andwork order (or orders) in the legs to achieve the desired spread price.Sometimes, however, a user might want to also view the legs of thespread, in which case three or more windows might be displayed at thetrading station—one window to display the spread, a second window todisplay market information corresponding to one leg, and a third windowto display market information corresponding to a second leg, and so on.

The graphical interface provides a way to quickly select which legs toquote. Slider 600 is one way to accomplish the selection. Other waysinclude on-screen buttons that can be selected by a user through a mouseinput or keyboard, for example; like the slider, the buttons could beplaced on any or all of the windows albeit the spread window or one ofthe windows displaying a leg. If the mechanism by which selection takesplace is displayed on more than one window, then it is preferred thatwhen a user changes the selection using one button or slider that theother buttons or sliders are automatically updated to display which legor legs is currently being quoted.

Further, it is possible to implement the present feature in hardware byproviding a mechanical way to select which leg to quote. For instance, akeyboard specifically designed for trading might provide this feature toprovide the user with the ability to change quoting legs. A hard key,switch, mechanical slider, or some other mechanical orelectro-mechanical mechanism could be used to send signals to theexample system.

Further yet, it is possible to allow another computer software orhardware program to actively control which legs are being quoted (e.g.,rather than requiring the user to make the selection). According to thisexample embodiment, a user might have a program that can predict withsome degree of confidence which legs should be quoted and which legsshould be hedged into. Such a program might take into account themomentum of the market, or other factors, to determine at an instant thedirection in which the market is headed. Once the market direction isdetermined, the program can use the example system to select or changethe leg being quoted.

V. Conclusion

There are many advantages for providing a quick quote configuration whentrading multiple tradeable objects. One possible advantage is if thetrader recognizes a shift in market movement, and because of the shiftit would be better to quote a different tradeable object first (ratherthan quoting it second or sometime later), then the trader can quicklydo so by switching between tradeable objects using the embodimentsdescribed herein. For instance, if the trader was going to buy tradeableobject “1” first, and then immediately offset a fill by sellingtradeable object “2” at market price—the trader might recognize that themarket for tradeable object “2” is actually going down in value and thusshe would want to sell tradeable object “2” first and then buy tradeableobject “1.” While either approach will complete a spread, the latterapproach (selling tradeable object “2” first) might result in achievinga more desirable spread price. Using the tools described herein, thetrader can dynamically and effectively make this switch without losingvaluable time.

Although the example programs, processes, methods and system has beendescribed and illustrated in detail, it is clearly understood that thesame is by way of illustration and example only and is not to be takenby way of limitation. Since numerous modifications and changes willreadily occur to those skilled in the art, it is not desired to limitthe invention to the exact construction and operation shown anddescribed, and accordingly, all suitable modifications and equivalentsmay be resorted to, falling within the scope of the invention.

According to one embodiment, the example system takes the form of acomputer program product that is stored on a computer readable storagemedium and is executed by a suitable instruction execution system in thecomputer-based device. The term computer readable medium, as usedherein, refers to any medium that participates in providing instructionsto processor for execution. Such a medium may take many forms, includingbut not limited to, non-volatile media, volatile media, and transmissionmedia. Non-volatile media includes, for example, optical or magneticdisks, such as storage device. Volatile media includes dynamic memory,such as main memory or RAM (random access memory). Common forms ofcomputer-readable media include, for example, a floppy disk, a flexibledisk, hard disk, magnetic tape, or any other magnetic medium, a CD-ROM,any other optical medium, punch cards, paper tape, any other physicalmedium with patterns of holes, a RAM, a PROM, and EPROM, a FLASH-EPROM,and any other memory chip or cartridge, or any other medium from which acomputer can read.

According to an alternative embodiment, a hardware embodiment might takea variety of different forms. A hardware embodiment may be implementedas an integrated circuit with custom gate arrays or an applicationspecific integrated circuit (“ASIC”). A hardware embodiment may also beimplemented with discrete hardware components and circuitry. Inparticular, it is understood that the logic structures and method stepsdescribed in the flow diagrams may be implemented in dedicated hardwaresuch as an ASIC, or as program instructions carried out by amicroprocessor or other computing device.

1. A method including: receiving by a computing device a desiredstrategy price for a trading strategy including a first leg for a firsttradeable object and second leg for a second tradeable object, whereinthe first leg for the first tradable object is initially selected as aleg to be quoted and the second leg for the second tradeable object isinitially selected as a leg to be hedged; dynamically switching by thecomputing device the selection of the leg to be quoted and the leg to behedged such that the second leg for the second tradeable object isselected as the leg to be quoted and the first leg for the firsttradeable object is selected as the leg to be hedged; determining by thecomputing device a price of an order to buy or sell the second tradeableobject based on the desired strategy price and market conditions for thefirst tradeable object; automatically initiating by the computing deviceplacement of the order to buy or sell the second tradeable object at thedetermined price to a second electronic exchange in response todynamically switching the selection; and automatically sending by thecomputing device a message to a first electronic exchange to delete anorder to buy or sell the first tradeable object in response todynamically switching the selection.
 2. The method of claim 1, whereinthe trading strategy includes a third leg for a third tradeable object,wherein the third leg for the third tradeable object is initiallyselected as a second leg to be hedged.
 3. The method of claim 2, whereinthe price of the order to buy or sell the second tradeable object isbased on market conditions for the third tradeable object.
 4. The methodof claim 1, wherein the market conditions for the first tradeable objectinclude at least one of a best bid price and a best ask price for thefirst tradeable object.
 5. The method of claim 1, wherein placement ofthe order to buy or sell the first tradeable object is initiated whenthe desired strategy price is received.
 6. The method of claim 1,wherein the first electronic exchange is the same as the secondelectronic exchange.
 7. The method of claim 1, wherein the firstelectronic exchange is different than the second electronic exchange. 8.The method of claim 1, wherein the leg to be quoted and the leg to behedged is dynamically switched based on market volatility in at leastone of the first tradeable object and the second tradeable object.
 9. Acomputer readable storage medium having stored therein instructionsexecutable by a processor, wherein the instructions are executable to:receive a desired strategy price for a trading strategy including afirst leg for a first tradeable object and second leg for a secondtradeable object, wherein the first leg for the first tradable object isinitially selected as a leg to be quoted and the second leg for thesecond tradeable object is initially selected as a leg to be hedged;dynamically switch the selection of the leg to be quoted and the leg tobe hedged such that the second leg for the second tradeable object isselected as the leg to be quoted and the first leg for the firsttradeable object is selected as the leg to be hedged; determine a priceof an order to buy or sell the second tradeable object based on thedesired strategy price and market conditions for the first tradeableobject; automatically initiate placement of the order to buy or sell thesecond tradeable object at the determined price to a second electronicexchange in response to dynamically switching the selection; andautomatically send a message to a first electronic exchange to delete anorder to buy or sell the first tradeable object in response todynamically switching the selection.
 10. The computer readable medium ofclaim 9, wherein the trading strategy includes a third leg for a thirdtradeable object, wherein the third leg for the third tradeable objectis initially selected as a second leg to be hedged.
 11. The computerreadable medium of claim 10, wherein the price of the order to buy orsell the second tradeable object is based on market conditions for thethird tradeable object.
 12. The computer readable medium of claim 9,wherein the market conditions for the first tradeable object include atleast one of a best bid price and a best ask price for the firsttradeable object.
 13. The computer readable medium of claim 9, whereinplacement of the order to buy or sell the first tradeable object isinitiated when the desired strategy price is received.
 14. The computerreadable medium of claim 9, wherein the first electronic exchange is thesame as the second electronic exchange.
 15. The computer readable mediumof claim 9, wherein the first electronic exchange is different than thesecond electronic exchange.
 16. The computer readable medium of claim 9,wherein the leg to be quoted and the leg to be hedged is dynamicallyswitched based on market volatility in at least one of the firsttradeable object and the second tradeable object.
 17. A systemincluding: a trading station including a processor, wherein the tradingstation is adapted to receive a desired strategy price for a tradingstrategy including a first leg for a first tradeable object and secondleg for a second tradeable object, wherein the first leg for the firsttradable object is initially selected as a leg to be quoted and thesecond leg for the second tradeable object is initially selected as aleg to be hedged; wherein the trading station is adapted to dynamicallyswitch the selection of the leg to be quoted and the leg to be hedgedsuch that the second leg for the second tradeable object is selected asthe leg to be quoted and the first leg for the first tradeable object isselected as the leg to be hedged; wherein the trading station is adaptedto determine a price of an order to buy or sell the second tradeableobject based on the desired strategy price and market conditions for thefirst tradeable object; wherein the trading station is adapted toautomatically initiate placement of the order to buy or sell the secondtradeable object at the determined price to a second electronic exchangein response to dynamically switching the selection; and wherein thetrading station is adapted to automatically send a message to a firstelectronic exchange to delete an order to buy or sell the firsttradeable object in response to dynamically switching the selection. 18.The system of claim 17, wherein the trading strategy includes a thirdleg for a third tradeable object, wherein the third leg for the thirdtradeable object is initially selected as a second leg to be hedged. 19.The system of claim 18, wherein the price of the order to buy or sellthe second tradeable object is based on market conditions for the thirdtradeable object.
 20. The system of claim 17, wherein the marketconditions for the first tradeable object include at least one of a bestbid price and a best ask price for the first tradeable object.
 21. Thesystem of claim 17, wherein placement of the order to buy or sell thefirst tradeable object is initiated when the desired strategy price isreceived.
 22. The system of claim 17, wherein the first electronicexchange is the same as the second electronic exchange.
 23. The systemof claim 17, wherein the first electronic exchange is different than thesecond electronic exchange.
 24. The system of claim 17, wherein the legto be quoted and the leg to be hedged is dynamically switched based onmarket volatility in at least one of the first tradeable object and thesecond tradeable object.